FTC Starts Rule Making Process For "Fee Transparency"

FTC STARTS RULE MAKING PROCESS FOR "FEE TRANSPARENCY"

Before even addressing what this story is about, it is important to note that NOTHING has yet changed. We are reporting on potential actions that the FTC is looking to take. There is no final rule yet, and there is a long process for the FTC to go through.

Despite this, it's good for operators to be proactive and make changes now.

On January 30, 2026, the Federal Trade Commission (FTC) announced that the agency will pursue an Advance Notice of Proposed Rulemaking (ANPRM) concerning “fees in the rental housing market.” In other words, they are beginning the rule making process to create new rules addressing fees in the rental industry.

As of the writing of this article, no details have been published. However, given previous actions of the FTC, we have a good indication of what the FTC is seeking.

In January, 2025, the FTC filed suit alleging a landlord failed to disclose the full all-in price that landlords were being deceptive by luring people with low rents, and then increasing with additional, peripheral monthly charges. In December, 2025, the FTC sent letters warning 13 property management companies they may be violating the law if they inhibit rental property managers and owners from conveying accurate pricing information when marketing rentals.

THEREFORE, it appears the FTC wants full transparency as to what a person will pay on a monthly rate. This is called the "monthly recurring rent" or "total rent," that a person is expected to pay on a monthly basis. This includes the base rent plus any mandatory monthly charges such as amenity fees, internet fees and any other charge that is not option. This likely does not include utilities that fluctuate based upon usage. However, if its a flat utility, that should be listed.

This amount should be advertised online and in any print advertising and given to the resident BEFORE a resident pays any money, such as the application fee. It is clear the FTC wants a consumer to be able to search and compare prices (apples to apples) and not be misled by a base price that doesn't include all monthly recurring charges. They want consumers to be able to make this comparison and learn the full monthly pricing, before they pay anything. This doesn’t mean that your prices can’t change, it just means that any advertised rate must set forth the “monthly recurring rent.”

Also, it would be a good idea to disclose online all mandatory initial administrative or application fees.